Using information from Clear (formerly ClearTax), which provides a thorough comparison of income tax return files under the Old Tax Regime and the New Tax Regime. The Old Regime was chosen by 85% of voters, while the New Regime was supported by 15%.
The analysis provided fascinating insights into Indian taxpayers’ tax choices, illuminating the evolving state of income tax reporting. With Some of the main conclusions were:
Age and gender distribution
30% of income tax filers were women, whereas 70% were men. 50% of filers were 31–40 years old, followed by 28% under 30. 16% of taxpayers are over 50, 7% are under 41. Use of 80C Deductions (Excluding the Old Regime)
Approximately 17% of taxpayers use the advantages up to Rs 50,000, while 10% of taxpayers who pay taxes under the Old Regime use the benefits between Rs 1 and 1.5 lakh. At least 55% of taxpayers have been using the 80C deductions. Unexpectedly, 10% of people have not utilized this option, highlighting the need for more knowledge and education on tax-saving choices.
Most Common Tax Deductions
20% of users used 80CCD(1B) for tax deductions on NPS self-contributions, whereas 50% of users claimed 80D tax deductions on medical insurance. These statistics highlight the significance of retirement and health planning for Indian taxpayers and highlight their preferences for tax-saving investments.
Archit Gupta, founder and CEO of Clear, said, “We are excited to present these insights and trends derived from our vast user data. The New Regime is gradually gaining attention in India’s changing tax environment, and there is a greater emphasis on tax-saving potential as a result.”
Conclusion:-
Indian income tax return files showed that 85% of voters favoured the Old Regime and 15% backed the New Regime. 30% of Indian taxpayers were women, with the majority between 31 and 40. The majority of taxpayers used 80C deductions, with 17% using them up to Rs 50,000, while 10% did not. The majority of users claimed 80CCD(1B) for NPS self-contributions and 50% claimed 80D tax deductions on medical insurance. These statistics highlight the importance of retirement and health planning for Indian taxpayers and their preference for tax-saving investments. Clear CEO Archit Gupta expressed excitement about the insights and trends derived from user data, stating that the New Regime is gradually gaining attention in India’s changing tax environment, emphasizing tax-saving potential.
